STATE OF NORTH CAROLINA )OFFICE OF THE COMMISSIONERS

The Board of
Commissioners of the County of Stokes, State of North Carolina, met

for regular session in the Commissioners’ Chambers of the Ronald Wilson
Reagan Memorial

Building (Administration Building) located in Danbury, North Carolina
on Monday,

December 13, 2010 at 1:30 pm with the following members present:

Chairman Ernest
Lankford

Vice Chairman J.
Leon Inman

Commissioner Jimmy
Walker

Commissioner Ronda
Jones

Commissioner
James D. Booth

County
Personnel in Attendance:

Clerk
to the Board Darlene Bullins

Finance
Director Julia Edwards

County
Attorney Edward Powell

DSS
Director Kristy Preston

Tax
Administrator Jake Oakley

Senior
Services Program Director Lynn Martens

Support
Services Supervisor Danny Stovall

Chairman Ernest Lankford called the meeting to
order.

Chairman Lankford
presented the following “Thought for the Day”:

·“Wisdom is the principle thing: therefore, get
wisdom and with all thy getting, get understanding”

Commissioner Booth
delivered the invocation.

GENERAL GOVERNMENT-GOVERNING BODY-PLEDGE OF
ALLEGIANCE

Chairman Lankford opened
the meeting by inviting the citizens in attendance to join the

Board with the Pledge of Allegiance.

GENERAL
GOVERNMENT – GOVERNING BODY – APPROVAL OF AGENDA

Chairman Lankford entertained a motion to
approve or amend the December 13, 2010

Agenda.

Vice Chairman Inman moved
to approve the December 13, 2010 Agenda as presented.

Commissioner Booth seconded the motion.

Commissioner Walker noted that he may want to
move an item on the Consent Agenda

to the Discussion Agenda when the Consent Agenda is considered for
approval.

The motion carried unanimously.

PUBLIC COMMENTS

There were no public comments.

CONSENT AGENDA

Chairman Lankford entertained a motion to
approve or amend the following items on the

Consent Agenda:

Minutes

Minutes of December 1, 2010

Minutes of December 6, 2010

Social
Services - Budget Amendment #26

Finance Director Julia Edwards submitted Budget
Amendment #26.

To amend the General Fund, the expenditures are to
be changed as follows:

Current

Account

Account

Budgeted

Increase

As

Number

Description

Amount

(Decrease)

Amended

Social Services

100.5480.000

Crisis Intervention

$81,880.00

$62,245.00

$144,125.00

Totals

$81,880.00

$62,245.00

$144,125.00

This budget amendment is justified as follows:

To appropriate additional funding for Crisis
Intervention which is 100% Federal Funding.

This will result in a net increase of $62,245.00 in
the expenditures and other financial use to the County’s annual budget.To provide the additional revenue for the
above, the following revenues will increase.These revenues have already been received or are verified they will be
received this fiscal year.

Current

Account

Account

Budgeted

Increase

As

Number

Description

Amount

(Decrease)

Amended

100.3301.202

Crisis Intervention

$1,927,344.00

$62,245.00

$1,989,589.00

Totals

$1,927,344.00

$62,245.00

$1,989,589.00

Sheriff’s
Department - Budget Amendment #27

Finance Director Julia Edwards submitted Budget
Amendment #27.

To amend the General Fund, the expenditures are to
be changed as follows:

Current

Account

Account

Budgeted

Increase

As

Number

Description

Amount

(Decrease)

Amended

Sheriff’s Department

100.4310.260

Departmental Supplies

$23,519.00

$250.00

$23,769.00

Totals

$23,519.00

$250.00

$23,769.00

This budget amendment is justified as follows:

To purchase candy for the King and Walnut Cove
Parades.

This will result in a net increase of $250.00 in the
expenditures and other financial use to the County’s annual budget.To provide the additional revenue for the
above, the following revenues will increase.These revenues have already been received or are verified they will be
received this fiscal year.

Current

Account

Account

Budgeted

Increase

As

Number

Description

Amount

(Decrease)

Amended

100.3839.001

Calendar
Fund(Miscellaneous)

$6,393.00

$250.00

$6,643.00

Totals

$6,393.00

$250.00

$6,643.00

Social
Services - Budget Amendment #28

Finance Director Julia Edwards submitted Budget
Amendment #28.

To amend the General Fund, the expenditures are to
be changed as follows:

Current

Account

Account

Budgeted

Increase

As

Number

Description

Amount

(Decrease)

Amended

Social Services

100.5310.180

Professional Fees

$91,263.00

$60,169.00

$151,432.00

Totals

$91,263.00

$60,169.00

$151,432.00

This budget amendment is justified as follows:

This Administrative Funding for Food and Nutrition
is paid for through the US Department of Defense Appropriations Act 2010.Unspent funds from the State Fiscal Year
ending June 30, 2010 will carry forward to State Fiscal Year 2010-11.

This will result in a net increase of $60,169.00 in
the expenditures and other financial use to the County’s annual budget.To provide the additional revenue for the
above, the following revenues will increase.These revenues have already been received or are verified they will be
received this fiscal year.

Current

Account

Account

Budgeted

Increase

As

Number

Description

Amount

(Decrease)

Amended

100.3301.202

SS County – Federal

$00.00

$60,169.00

$60,169.00

Totals

$00.00

$60,169.00

$60,169.00

HealthDepartment - Budget Amendment #29

Finance Director Julia Edwards submitted Budget Amendment
#29.

To amend the General Fund, the expenditures are to
be changed as follows:

Current

Account

Account

Budgeted

Increase

As

Number

Description

Amount

(Decrease)

Amended

Health Department

100.5100.260

Office Supplies

$15,680.00

$5,834.00

$21,514.00

Totals

$15,680.00

$5,834.00

$21,514.00

This budget amendment is justified as follows:

The Health Department’s WIC Breastfeeding Program
was awarded a WIC Breastfeeding Mini Grant.These grant funds will be used to purchase education materials and
incentives for breastfeeding mothers enrolled in the WIC Program.

This will result in a net increase of $5,834.00 in
the expenditures and other financial use to the County’s annual budget.To provide the additional revenue for the
above, the following revenues will increase.These revenues have already been received or are verified they will be
received this fiscal year.

Current

Account

Account

Budgeted

Increase

As

Number

Description

Amount

(Decrease)

Amended

100.3301.226

Breastfeeding Promotional
Grant

$31,500.00

$5,834.00

$37,334.00

Totals

$31,500.00

$5,834.00

$37,334.00

Health
Department - Budget Amendment #30

Finance Director Julia Edwards submitted Budget
Amendment #30.

To amend the General Fund, the expenditures are to
be changed as follows:

Current

Account

Account

Budgeted

Increase

As

Number

Description

Amount

(Decrease)

Amended

Health Department

100.5100.180

Professional Services

$128,292.00

$4,000.00

$132,292.00

100.5100.230

Medical Supplies

$100,000.00

$7,432.00

$107,432.00

Totals

$228,292.00

$11,432.00

$239,724.00

This budget amendment is justified as follows:

The Health Department’s Women Health Program has
received additional state funds which will be used to purchase various needed
medical supplies, lab processing fees, and other professional services.

This will result in a net increase of $11,432.00 in
the expenditures and other financial use to the County’s annual budget.To provide the additional revenue for the
above, the following revenues will increase.These revenues have already been received or are verified they will be
received this fiscal year.

Current

Account

Account

Budgeted

Increase

As

Number

Description

Amount

(Decrease)

Amended

100.3301.247

Family Planning X

$110,352.00

$11,432.00

$121,784.00

Totals

$110,352.00

$11,432.00

$121,784.00

Health
Department - Budget Amendment #31

Finance Director Julia Edwards submitted Budget
Amendment #31.

To amend the General Fund, the expenditures are to
be changed as follows:

Current

Account

Account

Budgeted

Increase

As

Number

Description

Amount

(Decrease)

Amended

Health Department

100.5100.230

Medical Supplies

$100,000.00

$1,567.00

$101,567.00

Totals

$100,000.00

$1,567.00

$101,567.00

This budget amendment is justified as follows:

The Health Department’s Immunization Program has
received additional state funds which will be used to purchase various needed
medical supplies.

This will result in a net increase of $1,567.00 in
the expenditures and other financial use to the County’s annual budget.To provide the additional revenue for the
above, the following revenues will increase.These revenues have already been received or are verified they will be
received this fiscal year.

Current

Account

Account

Budgeted

Increase

As

Number

Description

Amount

(Decrease)

Amended

100.3301.239

Immunization AP Grant

$14,616.00

$1,567.00

$16,183.00

Totals

$14,616.00

$1,567.00

$16,183.00

Health Department
– Budget Amendment #32

Finance Director Julia Edwards submitted Budget
Amendment #32.

To amend the General Fund, the expenditures are to
be changed as follows:

Current

Account

Account

Budgeted

Increase

As

Number

Description

Amount

(Decrease)

Amended

Health Department

100.5100.510

Equipment –Capital Outlay

$00.00

$127,344.00

$127,344.00

Totals

$00.00

$127,344.00

$127,344.00

This budget amendment is justified as follows:

The Health Department has been awarded reimbursable
grant funding from the Homeland Security Grant Program for the purchase of a
Regional Mass Vaccination/Emergency Response Trailer.This trailer will enhance our Region’s mass
vaccination and medical surge capabilities, allowing us to provide outreaching
services to the citizens in our regional area.This proposal was reviewed and approved by the Stokes County
Commissioners at a previous meeting.

This will result in a net increase of $127,344.00 in
the expenditures and other financial use to the County’s annual budget.To provide the additional revenue for the
above, the following revenues will increase.These revenues have already been received or are verified they will be
received this fiscal year.

Current

Account

Account

Budgeted

Increase

As

Number

Description

Amount

(Decrease)

Amended

100.3301.255

Bioterrorism

$00.00

$127,344.00

$127,344.00

Totals

$00.00

$127,344.00

$127,344.00

Health
Department - Budget Amendment #33

Finance Director Julia Edwards submitted Budget
Amendment #33.

To amend the General Fund, the expenditures are to
be changed as follows:

Current

Account

Account

Budgeted

Increase

As

Number

Description

Amount

(Decrease)

Amended

Health Department

100.5100.370

Advertising

$950.00

$981.00

$1,931.00

100.5100.180

Professional Services

$128,292.00

$4,323.00

$132,615.00

Totals

$129,242.00

$5,304.00

$134,546.00

This budget amendment is justified as follows:

To appropriate and transfer funds for the Health
Department’s Diabetes Self Management Program.This funding comes from two small mini grants which were received to
perform diabetic services.

This will result in a net increase of $5,304.00 in
the expenditures and other financial use to the County’s annual budget.To provide the additional revenue for the
above, the following revenues will increase.These revenues have already been received or are verified they will be
received this fiscal year.

the preparation of sandwiches at Priddy’s Store was on the Agenda at
their last meeting.

Commissioner Booth noted that after public comments were heard, the
item was approved by the

Board of Health to be taken off the Agenda.Commissioner Booth received general consensus
from

fellow members at the end of the meeting that this issue was closed.

GENERAL
GOVERNMENT – GOVERNING BODY – DISCUSSION AGENDA

Proposed Code
of Ethics

County Attorney Edward
Powell submitted the following proposed Code of Ethics

along with a proposed Resolution to adopt the Code of Ethics for the
Board’s consideration and

discussion:

STOKES COUNTY

CODE OF ETHICS

FOR THE BOARD OF COMMISSIONERS

The stability and proper operation of democratic representative
government depends upon the continuing consent of the governed, upon the public
confidence in the integrity of the government and upon responsible exercise of
the trust conferred by the people. Government decisions and policy must be made
and implemented through proper channels and processes of the governmental
structure. The purpose of this code is to establish guidelines for ethical
standards of conduct for the Board of Commissioners. It should not be
considered a substitute for the law or a Board of Commissioners member's best
judgment.

Board of Commissioners members must be able to act in a manner to
maintain their integrity and independence; yet must be responsive to the
interests and needs of those they represent. Board of Commissioners members
serve in an important advocacy capacity in meeting the needs of their citizens
and should recognize the legitimacy of this role as well as the intrinsic
importance of this function to the proper functioning of representative
government. At the same time, Board of Commissioners members must, at times,
act in an adjudicatory or administrative capacity and must, when doing so, act
in a fair and impartial manner. Board of Commissioners members must know how to
distinguish these roles and when each role is appropriate and they must act
accordingly. Board of Commissioners members must be aware of their obligation
to conform their behavior to standards of ethical conduct that warrant the
trust of their constituents. Each Board of Commissioners member must find
within his or her own conscience the touchstone on which to determine
appropriate conduct.

I.A
Board of Commissioners Member Shall Obey the Law

Board of Commissioners members shall
support the Constitution of the United States, the Constitution of North
Carolina and the laws enacted by the Congress of the United States and the
General Assembly pursuant thereto. Members specifically acknowledge and agree
to comply with the requirements of NCGS §14-234 entitled “Public officers or
employees benefiting from public contracts; exceptions.”

II.A Board of Commissioners Member Should Uphold the Integrity
and Independence of His or Her Office

Board of Commissioners members
should demonstrate the highest standards of personal integrity, truthfulness,
honesty and fortitude in all their public activities in order to inspire public
confidence and trust in County government. Board of Commissioners members
should participate in establishing, maintaining, and enforcing, and should
themselves observe, high standards of conduct so that the integrity and independence
of their office may be preserved. The provisions of this Code should be
construed and applied to further these objectives.

III.A Board of Commissioners Member Should Avoid Impropriety and
the Appearance of Impropriety in All His or Her Activities

It is essential that county
government attract those citizens best qualified and willing to serve. Board of
Commissioners members have legitimate interests of a private nature: economic,
professional and vocational.Board of
Commissioners members should not be denied, and should not deny to other Board
of Commissioners members or citizens, the opportunity to acquire, retain and
pursue private interests, economic or otherwise, except when conflicts with
their responsibility to the public cannot be avoided. Board of Commissioners
members must exercise their best judgment to determine when this is the case.

Board of Commissioners members
should respect and comply with the law and should conduct themselves at all
times in a manner that promotes public confidence in the integrity of the
office of Board of Commissioners.

Board of Commissioners members should not allow family, social, or other
relationships to unduly influence their conduct or judgment and should not lend
the prestige of the office of Board of Commissioners to advance the private
interests of others; nor should they convey or permit others to convey the
impression that they are in a special position to influence them. Board of
Commissioners members shall not grant any special consideration, treatment or
advantage to any citizen beyond that which is available to every other citizen.

If a Board member believes that his or her actions, while legal and
ethical, may be misunderstood, the member should seek the advice of the Board’s
attorney and should consider publicly disclosing the facts of the situation and
steps taken to resolve it.

IV.A Board of Commissioners Member Should
Perform the Duties of the Office Diligently

Board of Commissioners members
should, while performing the duties of the office as prescribed by law, give
precedence to these duties over other activities. In the performance of these
duties, the following standards should apply:

A.Legislative Responsibilities

Board of Commissioners members should actively pursue policy goals
they believe to be in the best interests of their constituents within the
parameters of orderly decision-making, rules of the Board of Commissioners
and open government.

Board of Commissioners members should respect the legitimacy of the
goals and interests of other Board of Commissioners members and should
respect the rights of others to pursue goals and policies different from
their own.

B.Adjudicative Responsibilities

Board of Commissioners members should be faithful to the general
and local laws pertaining to the office and strive for professional
competence in them. They should be unswayed by partisan interests, public
clamor, or fear of criticism.

Board of Commissioners members should demand and contribute to the
maintenance of order and decorum in proceedings before the Board of
Commissioners.

Board of Commissioners members should be honest, patient, dignified
and courteous to those with whom they deal in their official capacity, and
should require similar conduct of their staff and others subject to their
direction and control.

Board of Commissioners members should accord to every person who is
legally interested in a proceeding before the Board full right to be heard
according to law.

Board of Commissioners members should dispose promptly of the
business of the County for which they are responsible.

C.Administrative Responsibilities

Board of Commissioners members should clearly distinguish
legislative, adjudicatory and administrative responsibilities and should
refrain from inappropriate interference in the impartial administration of
County affairs by County employees. Board of Commissioners members should
diligently discharge those administrative responsibilities that are
appropriate, should maintain professional competence in the administration
of these duties and should facilitate the diligent discharge of the
administrative responsibilities of fellow Board of Commissioners members
and other County officials.

Board of Commissioners members should conserve the resources of the
County in their charge. They should employ County equipment, property,
funds and personnel only in legally permissible pursuits and in a manner
that exemplifies excellent stewardship.

Board of Commissioners members should require County employees subject
to their direction and control to observe the standards of fidelity and
diligence that apply to Board of Commissioners members as well as those
appropriate for employees.

Board of Commissioners members who become aware of improper conduct
by a County employee should promptly inform the County Manager, or, in the
case of a County employee who reports directly to the Board, initiate
appropriate disciplinary measures.

Board of Commissioners members should not employ or recommend the
appointment of unnecessary employees and should exercise the power of
employment only on the basis of merit, avoid favoritism and refrain from
illegal discrimination and nepotism. They should not approve compensation
of employees beyond the fair value of services rendered.

V.A Board of Commissioners Member Should Conduct the Affairs of
the Board of Commissioners in an Open and Public Manner

Board of Commissioners members
should be aware of the letter and intent of the State's Open Meetings Law,
should conduct the affairs of the Board of Commissioners consistent with the
letter and spirit of that law and consistent with the need to inspire and
maintain public confidence in the integrity and fairness of County government
and the office of Board of Commissioners. Consistent with this goal of
preserving public trust and in compliance with the State’s Open Meetings Law.
Board of Commissioners members should be aware of the need for discretion in
deliberations when the lack of discretion would pose a threat to the resources of
the County, to the reputation of current or potential County employees, to
orderly and responsible decision making, to the integrity of other governmental
processes or to other legitimate interests of the County.

This
Code of Ethics is adopted and effective this the ______ day of December, 2010
and shall apply to all Board of Commissioners members holding office on that
date.Upon the effective date of this Code
of Ethics, the previously adopted Code of Ethics of Stokes County is hereby
repealed.

_________________________________________

Ernest Lankford,
Chairman

_________________________________________

J. Leon Inman, Vice Chairman

_________________________________________

James Booth,
Commissioner

_________________________________________

Ronda Jones, Commissioner

_________________________________________

Jimmy Walker, Commissioner

ATTEST:

________________________________________

Darlene Bullins, Clerk to the Board

A RESOLUTION OF THE BOARD OF COMMISSIONERS OF

STOKES COUNTY

ADOPTING A CODE OF ETHICS

FOR THE BOARD OF COMMISSIONERS

WHEREAS, Section 160A-86 of the North
Carolina General Statutes requires local governing boards to adopt a Code of
Ethics, and

WHEREAS, as public officials we are
charged with upholding the trust of the citizens and residents of Stokes
County, and with obeying the law, and

WHEREAS, as public officials of Stokes
County, we believe our citizens and residents are entitled to the most open and
ethical government possible under the law.

NOW THEREFORE, in recognition of our
blessings and obligations as citizens of the State of North Carolina and as
public officials representing the citizens and residents of Stokes County and
acting pursuant to the requirements of Section 160A-86 of the North Carolina
General Statutes, we the Stokes County Board of Commissioners, do hereby adopt
the Code of Ethics, attached hereto as Exhibit A, to guide the Board in its
lawful decision-making.The Board of
Commissioners directs all advisory boards and committees, which currently
serve, or which may in the future be created to serve, to respect and abide by
this Code of Ethics in the performance of their lawful duties insomuch as they
may be applicable to the performance thereof.

Upon the effective date of this Code of Ethics, the
previously adopted Code of Ethics of Stokes County is hereby repealed.

This Resolution duly adopted this
_______ day of December, 2010.

_________________________________________________________

Ernest Lankford - ChairmanJ. Leon Inman - Vice Chairman

_________________________________________________________

Jimmy
Walker - CommissionerRonda Jones - Commissioner

____________________________Attest:

James
D. Booth – Commissioner___________________________________

Darlene M. Bullins – Clerk to the Board

Attorney Powell noted
the following regarding the proposed Code of Ethics:

·Legislature in the past session passed a law
requiring that all Board of Commissioners adopt a Code of Ethics no later than
January 1, 2011

·General Statute 160A-86 –Local Governing Boards’ Code
of Ethics requires the Code of Ethics to include the following:

o(a) Governing
boards of cities, counties, local board of education, unified governments,
sanitary districts, and consolidated city-counties shall adopt a resolution or
policy containing a code of ethics to guide actions by the governing board
members in the performance of the member’s official duties as a member of that
governing board

o(b) The resolution
or policy required by subsection (a) of this section shall address at least all
of the following:

§The need to obey
all applicable laws regarding official actions taken as a board member

§The need to uphold
the integrity and independence of the board member’s office

§The need to avoid
impropriety in the exercise of the board members’ official duties

§The need to
faithfully perform the duties of the office

§The need to
conduct the affairs of the governing board in an open and public matter,
including complying with all applicable laws governing open meetings and public
records

·Proposed Code of Ethics has everything that the law
requires

·Board has the option to add other items if desired

·Along with the Clerk to the Board, have reviewed
several Code of Ethics from surrounding counties and cities, some are very
detailed and some only included the minimum requirements

Lankford of the required ethics training for newly and re-elected
commissioners.

Chairman Lankford noted that the County will
be holding a webinar for those needing

the required ethics training after the first of the year.

The Board discussed
the proposed Code of Ethics with Attorney Powell.

Commissioner Walker discussed
the following item:

·Adjudicative
Responsibilities – Item 1

Board of
Commissioners members should be faithful to the general and local laws
pertaining to the office and strive for professional competence in them. They
should be unswayed by partisan interests, public clamor, or fear of criticism.

Commissioner Walker questioned Attorney Powell
how the Board would proceed if a

complaint was made against a member of the Board that the Code of
Ethics such as Item 1 under

Adjudicative Responsibilities were not being followed.

Attorney Powell stated
that if a citizen or another member of the Board has a complaint,

they can certainly file the complaint with the County Manager or the
Chairman of the Board of

Commissioners.The Board can
take appropriate action through their regular process as all other

actions are taken as an Agenda item.

Commissioner Walker
discussed the following item:

·Adjudicative
Responsibilities – Item #3

Board of
Commissioners members should be honest, patient, dignified and courteous to
those with whom they deal in their official capacity, and should require
similar conduct of their staff and others subject to their direction and
control.

Planning Committee, presented the following information regarding
additional Home and

Community Care Block Grant Funding:

·$4,582.00 additional Home and Community Care
Block Grant has been allocated to
Stokes County (Federal Funds)

·The Aging Planning Committee convened on
November 8th to hear provider requests for the additional funding

·Three providers requested additional funding:

oSocial
Services requested the entire amount = $4,582 which would allow one client
to come off the waiting list for In Home Aide

oKing
Senior Center requested $300 to subsidize the Forsyth Tech. computer
classes, a private donation was made at the meeting to cover their request

oWalnut
Cove Senior Center requested $1,000 for programming, Thanksgiving dinner,
exercise classes, etc. (programming is essential in retaining the Center of
Excellence which the Center currently has at the State level) (Additional
funding is received from the State for Centers of Excellence)

·Additional funding for the Walnut Cove Senior Center requires no County
funding – Center has budgeted funds to cover the 10% required match

·Additional funding for Social Services requires
a 10% match, Social Services does not have budgeted funding to cover the 10%
required match and requests allocation of $272 from the County’s Contingency
account

Chairman Lankford opened the floor
for discussion.

The Board had no issues with the
recommendations submitted from the Aging Planning

Committee.

Commissioner
Walker confirmed with Finance Director Edwards that the additional

HCCBG funding is a usual occurrence associated with the
HCCBG funding.

Chairman
Lankford confirmed with Director Martens that the funding being allocated to

Social Services will provide In Home Aide Services to one
client who was on the waiting list

and the additional funding for the Walnut Cove Senior Center
will help to subsidize programming

for the Walnut Cove Senior Center.

Budget Amendments

Finance Director Julia
Edwards submitted the following two budget amendments that

will need to be approved if the additional allocation is approved:

Social
Services

Current

Account

Account

Budgeted

Increase

As

Number

Description

Amount

(Decrease)

Amended

Social Services

100.5130.184

Professional Services

$47,868.00

$4,354.00

$52,222.00

100.9910.000

Contingency

$187,681.00

$(272.00)

$187,409.00

Totals

$235,549.00

$4,082.00

$239,631.00

This budget amendment is justified as follows:

The appropriate additional funding for HCCBG in the
amount of $4,082.00 for In Home Aide.

This will result in a net increase of $4,082.00 in
the expenditures and other financial use to the County’s annual budget.To provide the additional revenue for the
above, the following revenues will increase.These revenues have already been received or are verified they will be
received this fiscal year.

Current

Account

Account

Budgeted

Increase

As

Number

Description

Amount

(Decrease)

Amended

100.3301.373

NWPCOG – HCCBG

$42,918.00

$4,082.00

$47,000.00

Totals

42,918.00

$4,082.00

$47,000.00

Walnut Cove
Senior Center

Current

Account

Account

Budgeted

Increase

As

Number

Description

Amount

(Decrease)

Amended

General Fund

100.5830.696

Walnut Cove Senior Center

$48,095.00

$92.00

$48,187.00

Totals

$48,095.00

$92.00

$48,187.00

Walnut Cove Senior Center

204.5861.180

Professional Services

$20,000.00

$92.00

$20,092.00

Totals

$20,000.00

$92.00

$20,092.00

This budget amendment is justified as follows:

To appropriate additional funding for operations and
decrease appropriation for general purposes for the Walnut Cove Senior Center.

This will result in a net increase of $184.00 in the
expenditures and other financial use to the County’s annual budget.To provide the additional revenue for the
above, the following revenues will increase.These revenues have already been received or are verified they will be
received this fiscal year.

Current

Account

Account

Budgeted

Increase

As

Number

Description

Amount

(Decrease)

Amended

General Fund

100.3301.376

NWPCOG-Senior Center General
Purpose

$12,653.00

$(408.00)

$12,245.00

100.3301.377

NWPCOG-Senior Center
Operations

$28,102.00

$500.00

$28,602.00

Totals

$40,755.00

$92.00

$40,847.00

Walnut Cove Senior Center

204.3301.376

NWPCOG-Senior Center
Operations

$28,102.00

$500.00

$28,602.00

204.3301.377

NWPCOG-Senior Center
General Purpose

$12,653.00

$(408.00)

$12,245.00

Totals

$40,755.00

$92.00

$40,847.00

Chairman Lankford, with full
consensus of the Board, directed the Clerk to place the

December 12, 2011December 27, 2011**

*The
Board of Commissioners will conduct its regular meetings in the Commissioners’
Chambers at the Administrative Building in Danbury.The Board will consider invitations to meet
at different locations throughout the County at the invitation of community
groups that wish to host a meeting.

Commissioners’ Meeting (Planning)– First Tuesday of
every other month 7:00 pm

Planning meetings are held as needed- the meeting
will be advertised prior to the dates listed below:

Held in Commissioners’ Chambers

February 1, 2011 (as
needed)

April
5, 2011 (as needed)

June
7, 2011 (as needed)

August
2, 2011 (as needed)

October
4, 2011 (as needed)

December
6, 2011 (as needed)

Stokes County League of Governments – 6:30 pm

Meeting with Town of Danbury, Town of Walnut Cove,
City of King and Stokes County

January
27, 2011 – Town of Walnut Cove

April
21, 2011 – Town of Danbury

July
21, 2011 - City of King

October
6, 2011 – Stokes County

Any other change in
Date, Time, or Place will be advertised and placed on the County Web Page –
www.co.stokes.nc.us

Darlene Bullins

Clerk to the Board

Chairman
Lankford opened the floor for discussion.

The Board
had no issues with the proposed calendar submitted by Clerk Bullins.

Vice
Chairman Inman confirmed with Chairman Lankford that Goal Sessions would be

planned after the first of the year and would advertised
separately.

Proposed Work
Session for Financial Models for Debt Service

Clerk
Darlene Bullins requested the Board review the following dates submitted by

Finance Director Julia Edwards for a work session with the County’s
Financial Advisor Doug

Carter to discuss the County’s financial models:

·January 11, 2011

·January 12, 2011

·January 13, 2011

·January 19, 2011

·January 20, 2011

Clerk Bullins noted that the date
could be addressed with the 2011 Calendar which

would save advertising dollars.

The Board discussed possible dates
for a work session with Mr. Carter.

The Board unanimously agreed to
have Clerk Bullins advertise Thursday, January 13, 2011

at 2:00 pm for the work session with Mr. Carter in the
conference room on the third floor.

Chairman
Lankford noted that Mr. Carter had volunteered to do the work session free of

charge.

Chairman Lankford, with full
consensus of the Board, directed the Clerk to place the

item on the December 28th Action Agenda.

Proposed Vehicle
Purchases – Fiscal Year 2010-11

Support
Services Supervisor Danny Stovall submitted the following information

oBariatric stretcher will be housed in the body
of the vehicle instead of being the EMS
office in Danbury

oUnsure about the gas mileage, probably about the
same as the 350 chassis of the Excursion currently being used by the EMS Shift
Supervisor

oAdditional equipment such as utility bed, light
bar, radio, siren, etc. will be purchased from other sources

·Quote prices does not include 3% vehicle tax and
$6 permanent tag fee for each vehicle

·Any unused funding from Social Services,
Sheriff’s Department, and EMS will fall back into the County’s Fund Balance

·Any unused funding from Water and Sewer will
fall back into the Water and Sewer Fund Balance

Support Services Supervisor Stovall
informed the Board that he was working with Vehicle

Maintenance Supervisor Mabe for an auction in early spring
of 2011.

The Board discussed the vehicle
purchases with Support Services Supervisor Stovall.

Chairman Lankford, with full
consensus of the Board, directed the Clerk to place the

item on the December 28th Action Agenda.

Home Health
Relocation – Further Discussion

Chairman Lankford presented the
following information from former Manager Bryan

Steen:

In response to the
Board’s request, I had Del Hall research cost associated with moving 911
Communications out of the current location, see attached memo from Del.It appears the initial minimal cost
would exceed $50,000.00 to make the move.Del has not been able to verify cost for relocation of cabling,
reconnection of the generator, UPS and recorder as well as any interior
construction cost for materials and labor.

With this in mind, I
renew my original recommendation to approve Option “B” that I submitted to
the Board for consideration during the 11-22-2010 Board Meeting:

Option B,

Move the Preparedness Planner, two
Health Department Community Care employees and a DSS Community Care employee to
the modular building and provide storage space for the Preparedness Planner,
Baby Love, Health Department and DSS.

Move Home Health
Supplies, Dead & Live Files to current Home Health Conf. Rm. and move,
if needed, non-essential items to the current copier, fax, supply room or
the modular building.

Shift two Home Health
nurses to the current Community Care office.

*Preparedness Planner
& Supplies could be moved to former Enviro. Health Office.

**County would be responsible
for cost related to long distant phone calls, fax line, DSL connection and
electric service for HVAC, equipment and lights.Hospital will add this to their current
phone system.

***I believe all
repairs, modifications and operation of the modular building through June
30, 2011can be accomplished with the funds originally set aside for repair
of the Day Care Building.

No Home Health
personnel leave the DSS Building, see Option “B” diagram.

Modular Building

In his memo, the Health
Director asked for additional investigation into moving the modular
building to the Stokes County Government Campus.I presented the information below on
11-08-2010 and nothing has changed.

The building can be
moved to our campus, but there will be costs: tear down/transport
approximately $12,000.00/set up fee, Town of Danbury zoning compliance
permit application ($35.00), site preparation cost and cost for water and
sewer line extensions that can’t be calculated until a location is
established. Parking lot and ADA building accessibility cost, to include
handicapped parking, may also be incurred depending on the topography of
the site selected.

Chairman Lankford opened the floor
for discussion.

Commissioner Booth noted the
following:

·Endorses Option “B”

·Doesn’t see a problem with the gravel drive at
the modular unit at the hospital (less than 75 yards)

·Building needs a little facial work on the
outside

·Very costly to move Communications to the lower
lobby of the Government Center, need to save E911 funding for the required E911
upgrade estimated at $1.3 million dollars

·Option ‘B” would be the least cost to the
taxpayers

Commissioner Jones noted the
following:

·Want to try to keep DSS employees in one building

·Modular unit is doable

·Need to look at moving E911 in the future

·Endorses Option “B”

Commissioner Booth, Board of Health
member, also noted that at their last meeting,

the Board of Health formed a committee of the Director and
two Health Board members to

represent the Board of Health regarding this issue.Commissioner Walker, who was also in

attendance for the Board of Health meeting, suggested the
Board of Health designate the director to

negotiate on behalf of the Board of Health in order to get
this issue resolved.

An employee may be granted
a leave of absence from work due to an approved leave as allowed under the
Family Medical Leave Act without pay for up to (6) six months after the
latter of 12 approved weeks of family medical leave or the exhaustion of
earned accumulated leave time.

The employee must
provide the County with sufficient medical information regarding the need
for the extended leave.Medical
Leave without pay must be approved by the County Manager.Employee will be granted medical leave
without pay in two months increments, not to exceed six months.

An employee on approved
medical leave without pay shall not accrue vacation, sick, or holiday
leave and will be responsible of timely paying the employee portion of any
insurance premiums.Failure to pay
premiums within 30 days of the due date will result in termination of
insurance coverage.

Failure to return to
work at the end of the granted leave will be considered a voluntary
resignation.

Chairman
Lankford opened the floor for any further discussion.

The Board
had no issues with the proposed Medical Leave Without Pay.

Chairman
Lankford expressed concerns the following underlined wordage being added to

the following paragraph:

Department Heads or the County Manager
may require a physician’s certificate as to the nature

of an employee’s illness and as to his/her physical
capacity to resume duties for each occasion on which he/she uses sick
leave.Failure to produce a physician’s
certificate as requested shall be considered just cause for disciplinary
action.At the expiration of an
authorized sick leave, the Department Head upon approval of the County Manager
may require a physician of their choice to provide a physical and/or mental
examination at the County’s expense to determine fitness for duty.

The
Board discussed the wordage regarding the County requiring an additional
physician

note to determine fitness for duty.Personnel Officer Bullins noted that this
would not apply to

all employees returning from medical leave, but would give
the County an option if needed.

Personnel Officer Bullins noted that there were no issues
with deleting the wordage.

The Board
unanimously agreed to delete the following suggestion submitted by the

Personnel Committee:

At the expiration of
an authorized sick leave, the Department Head upon approval of the

County Manager may require a physician of their
choice to provide a physical and/or mental examination at the County’s expense
to determine fitness for duty.

Commissioner Walker expressed the
following concerns:

·Approving the personnel policy reinstates the
current longevity salary plan

·Have heard concerns from employees that the
County policy has no merit provisions and no provisions for rewarding an
employee who is doing an exceptional job

·Under the current plan, the employee who barely
is meeting the requirements to maintain his job gets the same longevity as the
employee who is giving 110+

·Concerns have also been expressed that newly
hired employees with experience can be hired above the employee who is already here
and trained

Commissioner Walker confirmed with
County Attorney Powell that he had reviewed the

proposed personnel changes and had no issues with the
suggested changes.

Chairman Lankford, with full
consensus of the Board, directed the Clerk to place the

item on the December 28th Action Agenda.

Job Vacancies

Chairman
Lankford presented the following job vacancies for the Board to consider:

is requesting that “debt obligations” and “debt repayment’
be added to the letter approved by the

Board on October 11, 2010.Chairman Lankford noted that without this wording, an exception

letter would have to be included in the audit which could
affect the hospital’s RFP process.

Commissioner
Walker expressed concerns with signing the confirmation letter which

included wording “debt obligations” and “debt repayment”
that could eventually be the county’s

responsibility when and if the hospital is sold.

Attorney
Crill discussed the following with the Board:

·The debt ($1.4 million dollars to Baptist
Hospital) would have to be paid one way or the other (a monthly repayment plan
has been agreed by both Baptist Hospital and Stokes Reynolds Memorial Board of
Trustees)

·Most purchasers would not assume the debt, most
purchasers would want to buy the assets clear

·The money generated from the sale of the hospital
in part would go to pay off the debt

·One unanswered question- Will there be enough money from the sale of
the hospital to repay the debt?This
will not be known until the RFP process is completed.

·Not sure there is a choice to sign or not sign
the confirmation letter, the hospital is owned by the County

·Best outcome, proceed with the RFP, if the
hospital is sold, pay the debt and any remaining funds be put back into the
County’s Fund Balance to repay the county for the funding already allocated on
behalf of the hospital

·County does not have to sell if the offers are
not acceptable

·Not sure if this is a good time to put out the
RFP, must go through the process in order to see

·Can see issues arising if the letter is not
approved

Commissioner Walker requested the
item be placed on the December 28th Action Agenda.

Chairman Lankford, with full
consensus of the Board, requested CEO Pam Tillman to

speak to the Board.

CEO Pam
Tillman noted the following:

·Timing is very critical

·Hospital audit can’t be completed until an
answer is received from the Board of Commissioners as to whether they will
approve and sign the letter

·If the letter is not included in the hospital’s
audit, a letter stating an ongoing concern would have to be placed in the audit
which might not look favorable to potential buyers

·This unfavorable concern will also have to be
addressed with the Local Government Commission

·Audit needs to be done in order to be available
when RFPs are mailed out

Vice
Chairman Inman reiterated the County now owns the hospital and without the

letter, the hospital would mostly likely have an unqualified
opinion.The proposed letter

simply says that the Board of Commissioners is making a commitment
to keeping the

hospital open, this is not a guarantee.

Finance Director Julia Edwards noted
the following:

·Been in several discussions with the hospital’s
auditor, Dixon & Hughes, along with the County’s auditor, Martin &
Starnes regarding this issue

·Martin & Starnes does not feel that the
county’s audit needs to be changed due to the note being signed by the
hospital, not the county

·This has been a debate between the two auditing
firms

·Putting this wordage regarding debt does
obligate Stokes County per the county’s auditor

Vice Chairman Inman reiterated the
County owns the Hospital.

CEO Pam Tillman stated that in the Transfer
Agreement signed by the County, Section Six

states that the County is assuming the responsibility for
the debt, but will be paid out of Stokes

Reynolds Memorial Hospital account, Section Six basically
obligates the County and Hospital.

Commissioner
Walker confirmed with Attorney Crill that there were no issues with adding

this wordage to the confirmation letter.

Attorney
Crill reiterated that the purchaser expects to buy the assets free and clear

and the county retain any liabilities.The purchaser would buy the assets including
the (CONS),

probably the equipment at somewhere around depreciation
value, the receivables at a discounted

amount, supplies, furnishing, and would not include real
estate which would probably be leased

from the county until a new hospital is built.

Attorney
Crill noted the only way to see who is interested in the hospital is to go
forward

with the RFP.If the
County is not satisfied with the proposals received, the County can always

have an evaluation performed which is very expensive.

The Board
discussed the Certificate of Needs (CONs) and the operating losses of the

hospital with Attorney Crill.

Chairman
Lankford entertained a motion to move the item to today’s Action Agenda.

Vice Chairman Inman moved to
transfer the item “Revision to Confirmation Letter for

Chairman
Lankford opened the floor for further discussion regarding the engineering

services for Early College High School.

Support
Services Supervisor Danny Stovall noted the following additional information:

·Meter has been placed in front of the building
in order to receive daily water readings

·Staff at the Early College location will start
providing the County with body counts weekly

·These items are needed in order to request a
reduction in flow on the system in order to increase the number of students the
septic system is permitted for

·In regards to the current septic system, there
can be no more than 69 students added to the location before permitting has to
be approved by the State

·Currently, the septic system is permitted for
248 students

·Need to get a contract with Robbins Architecture
in order to get the project started

·State permitting process for the new septic
system may take up to 9 months

·Engineer Darian Creed suggests the County
consider putting in the same size septic system as the current system with the
hopes that sewer will be at the location in the future, a larger septic system
is very costly

·Mr. Stovall also recommends installing the same
size septic system as the current system

Commissioner Booth questioned if
this additional POD will take care of the Early College

students and those attending classes at Forsyth Tech.Chairman Lankford noted that the Early

College at full capacity will only have 250 students.

Support
Services Supervisor Stovall reiterated that funding was available.

On ___________, 2010, the Board of Commissioners (the
“Board of Commissioners”) of Stokes County, North Carolina (the “County”)
adopted a resolution (the “Resolution”) declaring its intent to sell, lease, or
convey Stokes-Reynolds Memorial Hospital (the “Hospital”).In accordance with the Resolution and the
provisions of Part 1, Article 2, Chapter 131E of the NC General Statutes (the
“Statute”), the Board of Commissioners is required to solicit proposals for the
sale, lease or conveyance of the Hospital.The purpose of this letter is to invite your organization to submit a
proposal. (copies of the Resolution and the Statute are enclosed for your
reference.)The County is under no
obligation or responsibility to accept any proposal and reserves the right to
reject any and all proposals.

The Hospital is owned by the County and is operated by
Stokes-Reynolds Memorial Hospital, Inc., a nonprofit corporation (the
“Corporation”), pursuant to a lease agreement (the “Lease”) between the County,
as Lessor, and the Corporation, as Lessee.The Lease will terminate upon the closing of the sale of the Hospital
assets to the Purchaser.

It is the intention of the County to sell the Hospital,
but proposals for the lease of the Hospital real estate and the sale of the
personal assets will be considered.The
County will require, as a condition to the sale or lease of the Hospital, that
the buyer or lessee (the “Purchaser”) agree to replace the Hospital’s inpatient
hospital facility with a new inpatient hospital facility within a reasonable
period of time.The County will require
that location of the replacement hospital be consistent with the CMS
requirements for the relocation of a Critical Access Hospital and that it be
within an approximately three-mile radius of the Hospital.The County reserves the right to retain
possession and use of a modular building located on the hospital campus in
Danbury.

In addition to the condition regarding the replacement of
the inpatient facility, the following specific provisions listed in the Statute
will be included in the lease, sale or conveyance document:

1.The
Purchaser shall operate the Hospital, including the replacement inpatient
facility, as a community general hospital open to the general public and free
of discrimination based on race, creed, color, sex, or national origin.

2.The Purchaser
shall continue to provide the same or similar clinical hospital services in
medical-surgery, pediatrics, outpatient and emergency treatment, including
emergency services for the indigent, that the Hospital provided prior to the
lease or sale of the Hospital.

3.The
Purchaser shall ensure that indigent care is available to the population of the
area served by the Hospital at levels related to need, as previously
demonstrated and determined mutually by the County and the Purchaser.

4.The
Purchaser shall not enact financial admission policies that have the effect of
denying essential medical services or treatment solely because of a patient’s
immediate inability to pay for the services or treatment.

5.The
Purchaser shall ensure that admission to and services of the Hospital are
available to beneficiaries of governmental reimbursement programs without
discrimination or preference because they are beneficiaries of such programs.

6.The
Purchaser shall prepare an annual report to the County that demonstrates
compliance with the requirements of the lease or sale documents.

The
Purchaser shall agree that if it fails to substantially comply with the
foregoing conditions, including without limitation, the replacement of the
Hospital’s inpatient facility with a new inpatient facility, or if it fails to
operate the Hospital as a community general hospital, or if it dissolves
without a successor corporation to carry out the terms and conditions of the
lease or sale documents, then all ownership or other rights in the Hospital,
including the building, land and equipment associated with the Hospital, shall
revert to the County; provided that any building. land or equipment associated
with the Hospital that the Purchaser has constructed or acquired since the sale
or lease may revert only upon payment to the Purchaser of a sum equal to the
cost less depreciation of the building, land or equipment.

The County expects to select the Purchaser from its
careful examination of the proposals and to thereafter enter into negotiations
with the selected party relating to a definitive agreement or agreements.However, the County reserves the right to
reject any or all proposals for reasons sufficient to the Board of
Commissioners in its sole and absolute discretion.

The County will require the Purchaser to reimburse the
County for its professional expenses in preparing this RFP and in connection
with the sale or lease transaction, including without limitation, legal and
consulting fees and expenses.

The County will require the Purchaser to provide
professional liability coverage (i.e. “Tail Coverage”) to protect the County
against liability for claims arising prior to the purchase of the Hospital.

Hospital Description

Stokes-Reynolds Memorial Hospital (License #H0165) is a
federally recognized Critical Access Hospital with two campus locations; Stokes-Reynolds Memorial Hospital in Danbury and Dr.
J.R. Jones Medical Center in King.These
are described as follows:

The SRMH campus in Danbury includes a full time Emergency
Department with 9 treatment rooms and 53 licensed inpatient general acute care
beds (25 of these beds are staffed) and 40 nursing facility beds that comprise
the Stokes-Reynolds Skilled Nursing Facility.This hospital campus location provides diagnostic imaging services
including fluoroscopy, echocardiography, vascular studies and ultrasound.Surgical capacity at this location includes
two licensed operating rooms that serve both inpatients and ambulatory
patients. Ancillary services include laboratory, physical therapy, occupational
therapy, respiratory therapy and pulmonary rehabilitation, diabetes education
and outpatient behavioral health. The Hospital also operates Stokes Medical
Associates family practice and Stokes Medical Associates-Pediatrics which are
located on the Danbury campus. The total gross square footage of the hospital
facility in Danbury is 52,330.

Located in
southwestern Stokes County, the Dr.
J.R. Jones Medical Center is licensed as part of Stokes-Reynolds Memorial Hospital and includes ambulatory surgery,
endoscopy and outpatient diagnostic services, including laboratory.Two ambulatory operating rooms are located in
the facility.Dr. J.R. Jones Medical Center provides emergency services Monday
through Friday from 8:00a.m to 12:00 Midnight and weekends & holidays from
9:00a.m to 12:00 midnight.Imaging
services include a CT scanner, a radiography and fluoroscopy room and computed
radiography. The Dr. J.R. Jones Medical Center totals 12,378
square feet.

In addition
to the above hospital facility locations, the Hospital provides outpatient
services in leased space at the Stokes Medical Center Park office building 167
Moore Road, King NC.Hospital-owned
imaging equipment at this location includes ultrasound, radiography unit, bone
density unit and mammography.At this
location, the hospital also provides physical therapy and occupational therapy
services through a contract services agreement.The Hospital also operates the King Comprehensive Wound Center at this
location.In addition, the Hospital
partners with specialty physicians to provide Dermatology, Orthopedics,
Podiatry and Urology services at Stokes Medical Center Park.

Property, Facilities
and Equipment

The land,
buildings and physical property owned by the hospital is described in the attached
spread sheet entitled “Stokes-Reynolds Memorial Hospital, 2010-2011 Statement
of Values.

CON Applications

According
to hospital officials, there are no CON applications that are pending review or
development.

Service Area
Demographics

The
majority of inpatients and long-term care patients originate from Stokes
County, making it the primary services area for Stokes-Reynolds Memorial
Hospital. Ambulatory surgery patients and endoscopy patients who obtain service
at Dr. J.R. Jones Medical Center
reflect a mix of patients with most originating from Stokes and Forsyth
County.

The following table
provides the total population data for Stokes and Forsyth Counties.

2010

2015

% Growth

Stokes County

46,958

47,700

1.6%

Forsyth County

361,444

390,369

8.0%

North
Carolina Office of State Budget and Management, July 2, 2010

www.osbm.state.nc.us

A high percentage of Stokes County
inpatients and ambulatory patients are served by Forsyth Memorial Hospital and
North Carolina Baptist Hospital.While
these facilities offer considerable depth of tertiary care in Winston-Salem,
Stokes-Reynolds Hospital fulfills a vital role in providing access to Emergency
Department, outpatient and inpatient care as well as nursing facility care to
Stokes County residents within their home county.

Financial Statements

Copies of the Hospital’s audited financial statements for
the fiscal years ended June 30, 2008 and June 30, 2009 and interim financial
statements through February 28, 2010, are enclosed with this letter.

Proposals

Your proposal should be in writing, signed by an authorized
person, and received by the undersigned no later than 5:00 pm on _____,
2010.My mailing address is Post Office
Box 20 Danbury, NC 27016 and my office is located in the Stokes County
Administration Building, located at 1014 Main Street, Danbury, North Carolina
27016.Requests for additional
information should be submitted to me.You are invited to visit the Hospital.Please call me to schedule your visit.My telephone number is (336) 593-2448 and my fax number is (336)
593-2346.

Please provide us with six (6) copies of your proposal and
an electronic copy, which may be in the form of a compact disk or an attachment
to an e-mail.The electronic copy should
be in PDF format.

All proposals will be evaluated as submitted; provided
that the County reserves the right to request more information.Although your proposal will be a public
document, it will be reviewed by the Commissioners in closed session, and will
be made available to the public when the County gives notice of a public
hearing on the proposals.

Information Regarding the Proposing Company

Please provide the following information in your proposal.

1.The full
name of your company (the “Company”), its state of organization, the date of
its organization, its mailing and street addresses, telephone number and the
name of the person to contact.Please
provide the same information for each subsidiary and affiliate of the Company
which is engaged in the operation of a hospital (each, a “Subsidiary” and collectively,
the “Subsidiaries”).

2.The name
of the directors and principal officers of the Company and each Subsidiary, and
a brief summary of the experience of each person in the healthcare industry.

3.Copies of
the audited financial statements of the Company and each Subsidiary (including
all footnotes and auditor’s letters) for the last three fiscal years and
unaudited interim statements for the current period.Please provide us with a copy of the
attorneys’ letters regarding pending and threatened claims and investigations
for the Company and each Subsidiary for each of the last three fiscal years.

4.A list of
all hospitals owned and/or operated by the Company and its Subsidiaries,
including the mailing addresses, telephone numbers and persons to contact for
each hospital.Please indicate which of
these are Critical Access Hospitals.

5.A
statement as to whether or not the Company, any Subsidiary or any shareholder,
officer or director of the Company or any Subsidiary has ever been suspended or
excluded from or denied participation in any federal health care program,
including without limitation Medicare, Medicaid and TRICARE.Please indicate whether there are any
threatened or ongoing investigations relating to Medicare, Medicaid or TRICARE.

6.A
statement as to whether or not the licensure or accreditation of the Company or
any Subsidiary, or any hospital owned or operated by the Company or any
Subsidiary of the Company, has ever been suspended, revoked or denied.

7.A listing
of the insurance coverage maintained by the Company and each Subsidiary,
including without limitation, professional liability, general liability and
officers and directors coverage.Please
include the name of each insurance company and provide the coverage limits and
deductibles under each policy.

8.A copy of
the indigent care policies in effect at hospitals owned or operated by the
Company and any Subsidiary of the Company.

9.A copy of
the most recent community benefit report or reports of the Company and its
Subsidiaries.

10.A complete
list of services provided by the hospitals owned and operated by the Company
and its Subsidiaries.

Matters to be Discussed in the Proposals

Please discuss the following matters in your proposal:

1.How you
propose to structure the transaction, including the amount you are willing to pay for the purchase or
lease of the Hospital real estate and the purchase
of the non-real estate Hospital assets.

2.Describe
your vision for providing health care services in the Hospital’s service area and strategy
the Company plans to employ to implement any changes necessary to achieve the
vision

3.How you
propose to grow the Hospital’s inpatient and outpatient volumes.

4.Describe
your plan to reduce patient outmigration.

5.Give
examples of successful growth strategies that the Company has utilized.

6.Do you
plan to make changes to the medical staff structure at the Hospital?If so, please describe your proposed
changes.

7.Does the
Company or any of its Subsidiaries operate a hospitalist program?If so, please describe the program.

8.Specifically describe the Company’s
experience in physician recruitment and management
of physician practices.What financial
arrangements (income guarantees, loans,
other financial assistance) does the Company contemplate using when recruiting physicians?

10.Please
describe how you determine charity care as opposed to bad debts.

11.Describe the commitment to help the
Hospital access sufficient capital to address its
facility, physician recruitment and other requirements for long-term financial
stability and ability to support clinical excellence in the future.

12.Describe the information technology
features the Company could offer to the Hospital.

13.Your
commitment to continued employment of current Hospital employees and continuation
of equivalent benefits, including without limitation, retirement benefits.

14.Your commitment to plan, develop
construct and license a new hospital facility within five (5) years.

15.Your record
of regulatory compliance.

16.Your commitment to maintain
appropriate amounts of insurance coverage including without limitation,
professional liability coverage and “tail” coverage to protect the County after the lease or sale of the
Hospital.

17.Information demonstrating that the
lease, or sale of the Hospital to your organization will provide for the
health-related needs of medically underserved groups
such as low income persons, racial and ethnic minorities, and handicapped persons.

18.Information on charges, services, and
indigent care at similar facilities owned or operated by the Company and its
subsidiaries.

19.Please
indicate whether you are willing to pay or reimburse the County for the costs of professional fees in connection with the
development of this RFP and relating
to the sale or lease of the Hospital.

20.Please
provide information
and examples of your commitment to support psychiatric and mental health
services and coordination of care through the hospital
emergency department. Please describe your experience regarding innovative methods for
assessment and coordination of care or including telepsychiatry.

22.Your commitment to
support Stokes County Emergency Medical Services capability
to maintain an “EMS crew station / on-call room” at the existing and anticipated
replacement hospital facility.

23.Information and examples of your
commitment to support Stokes County EMS and
other County Departments ability to obtainphysician examination of employees
with workers compensation injuries during and after normal business hours.

24.Your commitment to support public health
initiatives including contract staffing for
part-time, shared positions including physician’s assistant and nurse practitioner,
provided by the hospital to the Stokes County Public Health Clinics and the
Hospital's continued participation in Grant funded programs with the Health Department.

25.Your commitment to support public health
initiatives including Healthy Carolinians and other programs.

Please contact the undersigned for more information
regarding the Hospital and to schedule a visit to the Hospital

RESOLUTION
DECLARING THE INTENT OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF STOKES,
NORTH CAROLINA TO LEASE, SELL OR CONVEY STOKES-REYNOLDS MEMORIAL HOSPITAL

WHEREAS,
Stokes-Reynolds Memorial Hospital (the “Hospital”) is owned by the County of
Stokes, North Carolina (the “County”); and

WHEREAS, the Hospital consists of the
Stokes-Reynolds Memorial Hospital inpatient hospital facility located at 1570
NC Hwy 8 & 89 North, Danbury, North Carolina, and the J. R. Jones Medical
Center outpatient facility located at 402 West King Street, King, North Carolina;
and

WHEREAS, the Hospital also includes a
forty (40) bed skilled nursing facility located at 1570 NC Hwy 8 &89 North,
Danbury, North Carolina; and

WHEREAS,
the Hospital is operated as a community general hospital by the Stokes-Reynolds
Memorial Hospital, Inc. Board of Trustees; and

WHEREAS, the Board of
Commissioners of the County (the “Board of Commissioners”) appoints the members
of the Board of Trustees of Stokes-Reynolds Memorial Hospital, Inc.; and

WHEREAS,
The Board of Commissioners is interested in receiving proposals for the lease,
sale or conveyance of the Hospital and intends to negotiate a contract to sell,
lease or convey the Hospital; and

WHEREAS,
any lease, sale or conveyance of the Hospital by the Board of Commissioners (i)
shall be pursuant to the authority granted to the County by Part 1, Article 2,
Chapter 131E of the North Carolina General Statutes (the “Statute”), and(ii) shall be in compliance with the
procedures set out in the Statute, and any document of sale or lease shall
include the conditions required by the Statute;

WHEREAS,
in compliance with the Statute, the Board of Commissioners has given notice by
publication of its intent to lease, sell or convey the Hospital and has given
notice by certified mail to certain agencies of the State of North Carolina, as
required by the Statute; and

WHEREAS, there has been presented to
the Board of Commissioners a Request For Proposals for the lease, sale or
conveyance of the Hospital which the County intends to send to prospective
lessees and buyers.

NOW,
THEREFORE, THE BOARD OF COMMISSIONERS OF THE COUNTY OF STOKES, NORTH CAROLINA
RESOLVES AS FOLLOWS:

(1)The Board of Commissioners hereby
declares its intent to lease, sell, or convey Stokes-Reynolds Memorial
Hospital, pursuant to terms and conditions negotiated by the Board of
Commissioners.

(2)The Board of Commissioners hereby
approves the form and content of the Request For Proposals (the “RFP”) and
hereby authorizes the County Manager of Stokes County to provide a copy of the
RFP to any person who requests a copy.

(3)The County Manager shall directly
solicit proposals for the lease, sale, or conveyance of the Hospital from the
entities listed on Exhibit “A” attached hereto.Each such solicitation shall include a copy of the RFP and a copy of the
Statute.All proposals for the lease,
sale, or conveyance of the Hospital must be received by ____________________,
2010, in order to be considered by the Board of Commissioners.

(4)Any entity interested in leasing or
purchasing the Hospital shall provide to the County Manager information as to
charges, services and indigent care at similar facilities owned or operated by
the proposed lessee or purchaser.

(5)The Board of Commissioners reserves the
right to reject any and all proposals and to accept the proposal that it
determines, in its sole and absolute discretion, is in the best interests
ofStokes County and its citizens.

(6)The Board of Commissioners intends to
negotiate a contract for the lease, sale, or conveyance of the Hospital with
the entity that submits the proposal accepted by the Board of Commissioners.

(7)A public hearing on this Resolution of
Intent shall be held on ___________________, 2011, at _:_____ am/pm. in the
Commissioners Chambers, Administration Building, 1014 Main Street, Danbury,
North Carolina 27016

Adopted this 13th day of December, 2010

_________________________________________________________

Ernest Lankford - ChairmanJ. Leon Inman - Vice Chairman

_________________________________________________________

Jimmy Walker - CommissionerRonda Jones - Commissioner

____________________________

James D. Booth – Commissioner

Attest:

___________________________________

Darlene M. Bullins – Clerk to the Board

Attorney John Crill
discussed the following issues with the Board regarding the draft RFP

for Stokes Reynolds Memorial Hospital, Inc.:

·The thing that starts the RFP process is the
adoption of the Resolution Declaring the Intent of the Board of Commissioners
of the County of Stokes, North Carolina to Lease, Sell, or Convey Stokes
Reynolds Memorial Hospital

·Adoption of the Resolution actually announces the
intentions of the Board

·RFP process will take at least 60 days and normally
takes up to 6 months to complete

·RFP states that the County is under no obligation
or responsibility to accept any proposal and reserves the right to reject any
and all proposals

·RFP was prepared with the assistance of a health
care consultant who interviewed several individuals regarding the needs of the
hospital

·RFP contains several requirements

·County must decide if financial statements will be included in the RFP

·RFP process is driven by General Statutes

·Special notification must be sent to specific state
agencies notifying them the Board might consider adoption of the Resolution,
which has been done

·RFP must include the date of the Public Hearing for public comments
regarding the adoption of the Resolution

·RFP must included a date that the RFP must be
received

·RFP must be sent to anyone who has expressed
interest in receiving the RFP, a list of 25 prospective buyers or lessees will
be attached to the Resolution

·When the proposals are received, the Board must
hold another Public Hearing regarding the proposals, copies of the
proposalsmust be available to the
public

·RFP is a very public process

·County can take as long as needed to negotiate
withprospective buyers or lessees

·County reserves the right to request more
information

·The Board of Commissioners must adopt a resolution
approving the contract or contracts to lease or sell the hospital and
authorizes the contract or contracts to be executed by the County which is
available to the public

·Once the contract is approved, a closing date can
be scheduled

Attorney Crill discussed the following
specific provisions listed in the Statute which

will be included in the lease, sale, or conveyance of the Hospital:

·The Purchaser shall operate the Hospital,
including the replacement inpatient facility, as a community general hospital
open to the general public and free of discrimination based on race, creed,
color, sex, or national origin.

·The Purchaser shall continue to provide the same
or similar clinical hospital services in medical-surgery, pediatrics,
outpatient and emergency treatment, including emergency services for the
indigent, that the Hospital provided prior to the lease or sale of the
Hospital.

·The Purchaser shall ensure that indigent care is
available to the population of the area served by the Hospital at levels
related to need, as previously demonstrated and determined mutually by the
County and the Purchaser.

·The Purchaser shall not enact financial
admission policies that have the effect of denying essential medical services
or treatment solely because of a patient’s immediate inability to pay for the
services or treatment.

·The Purchaser shall ensure that admission to and
services of the Hospital are available to beneficiaries of governmental
reimbursement programs without discrimination or preference because they are
beneficiaries of such programs.

·The Purchaser shall prepare an annual report to
the County that demonstrates compliance with the requirements of the lease or
sale documents.

·The Purchaser shall agree that if it fails to
substantially comply with the foregoing conditions, including without
limitation, the replacement of the Hospital’s inpatient facility with a new
inpatient facility, or if it fails to operate the Hospital as a community
general hospital , or if it dissolves without a successor corporation to carry
out the terms and conditions of the lease or sale documents, then all ownership
or other rights in the Hospital, including the building, land and equipment
associated with the Hospital, shall revert to the County; provided that any
building, land or equipment associated with the Hospital that the Purchaser has
constructed or acquired since the sale or lease may revert only upon payment to
the Purchaser of a sum equal to the cost less depreciation of the building,
land or equipment.

Attorney Crill also noted the RFP requires the following:

·The purchaser to provide professional liability coverage
(i.e. “Tail Coverage”) to protect the County against liability for claims
arising

prior to the purchase of the Hospital

·The Purchaser to reimburse the County for its
professional expenses in preparing this RFP and in connection with the sale or
lease transaction, including without limitation, legal and consulting fees and
expenses.

Attorney Crill
discussed the following other items included in the RFP:

·Hospital Description

·Property, Facilities and Equipment

·CON Applications

·Service Area Demographics

·Information Regarding the Proposing Company

·Matters to be Discussed in the Proposals

Attorney Crill requested direction from the
Board whether to advertise in “Modern

Health Care” (national publication) which hospital administrators
receive on a weekly basis.Ads in

Relating To The
Lease, Sale Or Conveyance Of Stokes-Reynolds Memorial Hospital.

11/30/2010Publish Notice of a Regular Meeting of the Board of
County Commissioners to consider a Resolution of Intent to Sell, Lease or
Convey Stokes-Reynolds Memorial Hospital (the “Hospital”) (The Notice must be published not less than ten days prior to the
meeting)

12/12/2010_The Board of County Commissioners
(the “Board of Commissioners”), adopts the Resolution of Intent to Sell, lease
or Convey the Hospital and approves the Request for Proposals

(a) Specific notice of the meeting is given
by certified mail to certain state agencies.

(b)At the meeting, the Board of
Commissioners requests proposals for lease or purchase by direct solicitation
of at least five (5) prospective lessees or buyers and directs that specific
notice be given to certain state agencies.

(c)The Board of Commissioners schedules a
public hearing on the Resolution of Intent (The
public hearing must be held not less than 15 days after adoption of the
Resolution of Intent)

(d)Resolution of Intent is adopted

12/13/2010Make
Request For Proposals (“RFP”) available to interested parties.

___________
Publish Notice of
a Public Hearing on the Resolution of Intent (The notice must be published not less than 15 days prior to the
hearing)

___________The
Board of Commissioners holds the public hearing on the Resolution of Intent

(a)The
public hearing is held not less than 15 days after adoption of the Resolution
of Intent

(b)The Board of Commissioners schedules a
public hearing on the proposals.

___________Proposals
due

____________Publish Notice of a Public Hearing
of the Board of Commissioners on the proposals to lease or purchase the
Hospital (The Notice must be published
not less than 10 days prior to the hearing)

____________Copies of proposals available to the
public (make copies available at least 10
days prior to the hearing)

____________The Board of Commissioners holds a
public hearing on the proposals for lease or purchase of the Hospital.

(a)The
public hearing is held not less than 45 days after adopting the Resolution of
Intent and not less than 30 days after the public hearing on the notice of
intent.

(b)The public hearing includes time for
public presentations of the proposals

_____________Publish Notice of a Regular Meeting of
the Board of Commissioners to approve the lease or sale of the Hospital and authorize
the negotiation of the terms and conditions of a definitive contract or
contracts for the lease, sale or conveyance of the Hospital. (The
Notice must be published not later than 10 days prior to the meeting)

_____________Publish notice of the Regular Meeting
of the Board of Commissioners to approve the terms and conditions of the
definitive contract or contracts for the sale, lease or conveyance of the
Hospital and to approve the execution of the definitive contract or contracts. (The Notice must be published not less than
10 days prior to the meeting).

______________Copies of the definitive contract or
contracts for the sale, lease, or conveyance of the Hospital are made available
to the public no less than ten days prior to the meeting to approve the
contract or contracts.

______________At the regular meeting, the Board
of Commissioners adopts a resolution approving the contract or contracts to
lease or sell the Hospital and authorizes the contract or contracts to be
executed by the County. The resolution
must including a finding that the lease, sale or conveyance is in the public
interest after considering whether the proposed lease, sale, or conveyance will
meet the health-related needs of medically underserved groups, such as low
income persons, racial and ethnic minorities, and handicapped persons.

Vice Chairman Inman
stated that he felt that this Board had held a Public Hearing to

receive public comments, had worked diligently to keep the hospital
open and the best

decision at this time is to put
the hospital out for RFP.Commissioners
Jones and Booth concurred

with Vice Chairman Inman.The
motion carried unanimously.

Closed
Session

Chairman Lankford entertained a motion to
enter Closed Session for the following:

·To consider the initial employment or
appointment of an individual to any office or position, other than a vacancy in
the Board of County Commissioners or any other public body, or to consider the
qualifications, competence, performance, character, and fitness of any public
officer or employee, other than a member of the Board of Commissioners or of
some other public body pursuant to G.S. 143-318.11(a)(6).

Commissioner Booth moved to enter Closed
Session for the following:

·To consider the initial employment or
appointment of an individual to any office or position, other than a vacancy in
the Board of County Commissioners or any other public body, or to consider the
qualifications, competence, performance, character, and fitness of any public
officer or employee, other than a member of the Board of Commissioners or of
some other public body pursuant to G.S. 143-318.11(a)(6).

Commissioner Jones seconded and the motion
carried unanimously.

The Board re-entered the regular session of
the December 13th meeting.

Signature
Authorization

Chairman Lankford
entertained a motion.

Commissioner Booth
moved to give Clerk Darlene Bullins authorization to

sign paperwork normally signed by the county manager upon discussion
with Chairman